PNJ shares hit floor after reporting record losses

Gia Miêu |

Cash flow pressure and personnel changes have dragged PNJ shares down more than half of their market price in less than a month.

In the morning trading session on July 31, PNJ shares of Phu Nhuan Jewelry Joint Stock Company were under strong selling pressure right from the beginning of the session and the market price decreased to the full range to the price of 30,250 VND/share with more than 10.5 million shares traded.

Notably, PNJ shares just had a short recovery phase at the beginning of the week. After four consecutive floor-dropping sessions, this code suddenly increased to the full range of 32,900 VND/share in the session on July 27. However, bottom-fishing demand did not last long when the market price quickly turned around and continued to establish a new low zone.

In this price range, PNJ broke through the 30,750 VND bottom just set in the session on July 24, and retreated to the lowest level in nearly 6 years, since the end of October 2020. The market capitalization of the enterprise was thereby pulled down to around 15,500 billion VND. And compared to the price of more than 63,000 VND/share at the beginning of July, PNJ shares have lost more than half of their market price in less than a month.

The negative development of this stock appeared immediately after PNJ announced its Q2/2026 financial statements with a record loss.

The recently announced financial report of Phu Nhuan Jewelry Joint Stock Company shows that consolidated after-tax profit was negative nearly 283 billion VND, while in the same period it was still positive nearly 437 billion VND. This is the heaviest loss since this enterprise announced information in the third quarter of 2008.

The company reported losses not due to reduced business operations. From June to June 2026, PNJ's net revenue still recorded a growth of 12%, reaching nearly VND 8,484 billion.

The main reason for PNJ's record loss in Q2/2026 is due to increased business administration expenses by 5.2 times compared to the same period, nearly 1,063 billion VND. Of which, more than 865 billion VND came from provisioning related to product repurchase, although this activity arose after the end of the accounting period.

PNJ's leadership said that the provision is made based on available information and reasonable assumptions at the time of preparing the financial statements. The criteria for provision include the value of acquisition diamonds, estimated recovery price and the estimated adjustment rate for each diamond size group.

From the beginning of July 2026, PNJ recorded a sharp increase in the demand for resale of diamond jewelry. As of the end of July 27, the company announced that it had repurchased more than 7,000 billion VND, mainly diamonds, gold and jewelry. Pressure to purchase products occurred after the former leader and Director of PNJ Appraisal Company (P-Lab), a subsidiary of PNJ, was prosecuted for being involved in a diamond smuggling case.

At meetings with investors, PNJ's leadership has repeatedly affirmed that the company has sufficient resources to handle the matter and maintain its commitment to customers. However, after the first 3 weeks of purchasing and paying within 24 hours, this enterprise adjusted the process from July 21. If customers sell, the company will pay in installments and extend to 120 days. In case customers switch to another product, the process is implemented immediately and there is an additional discount.

Financial reports show that in the second quarter of 2026, total assets reached nearly 21,018 billion VND, an increase of 854 billion VND compared to the beginning of the year. Of which, PNJ has nearly 609 billion VND in cash and equivalents, an increase of nearly 17% compared to the beginning of the year. These are assets with high liquidity, which can quickly convert into cash with almost unchanged value.

In addition, the company also has more than VND 3,393 billion in short-term financial investments, an increase of 64% compared to the beginning of the year. Of which, more than VND 3,294 billion are deposits with a principal term of over 3 months, maturing within 12 months from the end of June.

PNJ's inventory decreased by more than 2% in the second quarter to 15,560 billion VND, mainly products, goods and raw materials. The company provisioned for a price reduction of more than 410 billion VND for damaged goods that do not meet business quality. This figure is 9 times larger than at the beginning of the year.

In the opposite direction, PNJ's total payables increased by 3% to more than 7,105 billion VND. Of which, financial loans recorded more than 3,989 billion VND, down more than 5%. All are short-term loans at commercial banks.

Gia Miêu
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